What is the purchasing process?
- Determining specification
- Selecting supplier
- Contracting
- Ordering
- Expediting
- Followup and evaluate
Why is purchasing important?
- Big economic potential
- Impact on the end product
- Increasing logistical requirements
- Increased collaboration between companies
Why does the purchasing cost share increase?
Increased competition => competence and cost superiority is needed => Strive for economies of scale => focus a few activities and outsource the rest
What does the supplier impact on the end product?
- quality
- design
- sustainability
- customer contact
What does the customers expect?
- Shorter lead times
- Narrower delivery windows
- Full assortment
What are important for suppliers to develop?
- product quality
- process efficiency
- delivery performance
- product development capabilities
What are the supplier development steps?
- Identify commodities
- Identify suppliers
- Form teams
- Meet with supplier
- Identify opportunities
- Define key metrics
- Agree on projects
- Monitor and modify
What aspects do you consider relevant when selecting suppliers for a development initiative?
Costs like ongoing costs, risk costs, costs of changing supplier
What are some barriers to successful supplier development?
Example:
- Not enough trust
- Lack of commitment
- Lack of required skills
- Impatience
- Lack of management support
What are some aspects to consider for creating good relations?
- Complexity
- Adaptation
- Long perspective
- Dependence
- Trust vs Information
- Conflict vs. Cooperation
Building supplier relation - the Japanese way
- Understand how your supplier work
- Turn supplier rivalry into opportunity
- Supervise your suppliers
- Develop suppliers’ technical capabilities
- Share information intensively but selectively
- Conduct joint improvement activities
